India Eyes 5.4 Million Tonnes Sugar Surplus This Season
India is projected to end the current sugar season with a surplus of 5.4 million tonnes, driven by favorable weather and improved cane planting in Maharashtra and Karnataka. Despite a 33% dip in production, government policies, including allowing 1 million tonnes for export, have stabilized prices and helped clear ₹9,000 crore in cane dues. Retail sugar prices rose to ₹45.56/kg, supporting millers and farmers.
India is projected to end the current sugar season (October-September) with a surplus of 5.4 million tonnes, according to the Indian Sugar and Bio-Energy Manufacturers Association (ISMA). Favorable weather, improved planting in Maharashtra and Karnataka, and varietal changes in Uttar Pradesh are driving production optimism for the 2025-26 season. Despite a 33% production dip this season, the government’s export policy — allowing 1 million tonnes for export — stabilized domestic prices, supported millers, and helped clear ₹9,000 crore in cane dues. Retail sugar prices rose to ₹45.56/kg from ₹44.36 a year ago, while wholesale rates increased to ₹4,234/quintal, ensuring industry stability and farmer support.
Key Highlights
# India expects a 5.4 million tonnes sugar surplus this season.
# Maharashtra and Karnataka report improved cane planting acreage.
# Government allowed 1 million tonnes of sugar exports for 2024-25.
# Retail sugar prices rose to ₹45.56/kg from ₹44.36 last year.
# Cane dues reached ₹9,000 crore — the highest in five seasons.
India’s sugar sector is on track for a surplus of 5.4 million tonnes by the end of the current season, driven by enhanced cane planting and favorable weather. According to ISMA, improved acreage in Maharashtra and Karnataka, alongside varietal upgrades in Uttar Pradesh, has boosted production prospects for 2025-26. Maharashtra completed planting on 7 lakh hectares — 1 lakh more than last year — while Karnataka saw a slight increase of 2,000 hectares.
Despite production dropping by 33% to 2.88 million tonnes from 4.29 million tonnes a year ago, sugar prices remain stable. The average retail price of sugar rose to ₹45.56/kg from ₹44.36 last year, while wholesale prices increased to ₹4,234/quintal from ₹4,089. ISMA credits the government’s timely export policy for supporting prices and preventing further declines.
The Centre’s decision to allow 1 million tonnes of sugar exports for 2024-25 provided crucial financial relief to millers, enabling them to clear outstanding cane dues — which reached ₹9,000 crore, the highest in five years. ISMA highlighted that this export policy balanced sugar inventory, stabilized prices, and ensured farmers received timely payments, directly benefiting 5.5 crore farming families.
Additionally, export allowances created a financial buffer for mills, supporting operational costs and future investments. By March 11, 0.15 million tonnes of sugar had already been exported, including 69,527 tonnes in transit.
Finally
India’s sugar industry remains resilient, balancing surplus production, rising prices, and farmer support — with exports playing a key role in maintaining economic stability and sector growth.
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Source : Investing.com
